Pan Orient updates Indonesia ops
Tuesday, July 10 2012 - 12:11 AM WIB
Citarum PSC (Pan Orient 77% and Operator)
Since the last operations update, the Jatuyu-1 well was drilled to a depth of approximately 5,920 feet true vertical depth ("TVD"). Strong over-pressure estimated at approximately 600 psi and extremely high mud gas readings of up to 80% were observed between approximately 5,530 and 5,920 feet TVD with difficulty maintaining adequate mud weight from 5,631 feet due to the influx of gas. This section drilled was inter bedded sandstone and shale with an inferred gas column based on the mud log data of approximately 390 feet. Some of the best gas shows were encountered at the bottom of the drilled section. While conducting a wiper trip from 5,920 feet the drill string became stuck and was backed off to 5,300 feet TVD.
After sidetracking, the well was drilled to a depth of approximately 5,500 feet TVD and 7" casing was set just above the interval where high mud gas and overpressure was encountered in the previous well bore. We will be drilling ahead through the zone of high mud gas readings starting within the next 24 hours and stop drilling at approximately 6,000 feet TVD to log the well. A decision to continue drilling an additional 1,700 feet down to the main Parigi reservoir target will be made after the analysis of the wireline logs. The possibility exists that we may decide to stop drilling and immediately test the well.
We are very encouraged by: 1) the indications of gas and reservoir we have observed in this well thus far, and 2) the fact we were still drilling within sands with high mud gas readings at 5,920 feet TVD when the drill pipe became stuck, suggesting a possible gas column of 390 feet that we appear yet to have encountered the base of.
A number of initiatives have been implemented with regard to personnel and present / future well design in order to best deal with the difficult drilling that has been experienced to date.
Total firm capital expenditures at the Citarum PSC are estimated at approximately US$16.6 million for the remainder of the three well program, excluding testing.
Batu Gajah PSC (Pan Orient 97% and Operator)
The company is currently finalizing land access agreements with the surface rights holder and the drilling of two wells is likely to commence in November 2012. In addition to drilling, 400 square kilometers of 3D seismic is planned for late 2012. Total capital expenditures in the Batu Gajah PSC for 2012 are estimated at approximately US$15.5 million.
South CPP PSC (Pan Orient 97% and Operator)
250 line kilometers of 2D seismic are planned for the South CPP PSC in 2012 with planned capital expenditures of approximately $3MM USD. The drilling of one well is anticipated in 2013 at approximately US$4 million.
East Jabung PSC (Pan Orient 100% and Operator)
440 line kilometers 2D seismic is planned for the East Jabung PSC in 2012 with planned capital expenditures of approximately US$5 million. Two wells are planned in 2013 at approximately US$12 million. (end of excerpt)